Chairman and Managing Directors Statement

Dear Shareholders,

It gives me great pleasure to present the first annual report of the Company for the financial year 2006-07 and share with you the success of our organization. This fiscal year has been an excellent one in terms of all round growth and profitability.

The Indian economy is growing at unprecedented rate and all indicators of the health of the economy are positive. The growth of containerized cargo has been roughly in the range of 8-10 per cent in the last few years and is still growing. With the increase in import-export trade the demand in transportation sector is also increasing.

This was a significant year for Monarays. Our vision as the preferred logistic service provider gained momentum and have been very encouraging. We are beginning to see this vision translate into real financial benefit. The turnover of the company was at Rs 414.47 lacs and post tax profit at Rs 33.21 lacs.

The outlook for the next fiscal remains bright. We are in a good shape and, as we move through 2007-08, we feel comfortable with the outlook for our business. I remain confident that Monarays’ highly skilled and dedicated Management and employees will grasp the opportunity to build on our strengths, expand our services, deepen our client relationships and create value for all our stakeholders. Monarays’ highly competent and committed work force is determined to take the Company into a higher trajectory of growth, performance and profitability.

With confidence, based on proven resilience to challenges and with well planned strategies, Monarays is poised for exponential growth and is moving ahead with strong portfolio of resources and competencies. As we move ahead fuelled by a shared passion to reach our milestones with innovation and speed, we look forward to your support in our journey to success.

Business and Future Prospects

This maiden landmark year for Monarays has seen a culmination of an exhilarating odyssey marked by many distinctions. We have successfully fostered a unique business model – one that is attractive to our clients because it is faster, better, more economical and ensuring highest standards of safety, service and satisfaction.

The growth of containerized cargo has been roughly in the range of 8-10 per cent in the last few years. As the level of containerized cargo is going up and as the import-export trade is growing, growth in the transportation sector is bound to increase .The Company started its business initially with five trailers and within one year added seven more trailers to its fleet. The company is planning to acquire additional trailers during the ensuing year to meet the growing market demand and to fulfill its vision of becoming the preferred logistic provider.

The market of Indian logistics service providers is largely unorganized and has a long way to go to catch up with the world leaders. But customers, multinational competitors and governmental agencies are all relentlessly driving the development and reengineering of the capabilities, offerings and business models of service providers. With an intention to expand its operation from a single logistic provider to a multi logistic provider, the company is exploring the option of strategic alliance, joint ventures, with other companies. The trust for this growth would come from Monarays strategy to vertically align its business and consolidate its strength in logistic operations.

Your company’s Board and employees are inspired by their vision of becoming India’s most valuable companies through world class performance, creating enduring values for all stakeholders including shareholders and the Indian society. Inspired by this vision, driven by values and powered by internal vitality, your Directors look forward to the future with confidence.